The report of the Director, West Yorkshire Pension Fund (Document “M”) explains that the next triennial actuarial valuation of the Fund will be prepared based on the situation at 31 March 2019, and will determine the level of employers’ contributions from April 2020 onwards.

Recommended –

That the report be noted.

(Caroline Blackburn – 01274 434523)

The report of the Director, West Yorkshire Pension Fund (Document “M”) explained that the next triennial actuarial valuation of the Fund would be prepared based on the situation at 31 March 2019, and would determine the level of employers’ contributions from April 2020 onwards.

Members were reminded that in accordance with the Local Government Pension Scheme Regulations the Fund was subject to an actuarial valuation by its appointed consulting actuary at 31 March 2019.

The main aims of carrying out an actuarial valuation of the Fund were to review the financial position of the fund; determine the employers’ contribution rates; and ensure that the legal requirements in relation to the actuarial valuation were met.

The report revealed that fund was working with the Fund’s Actuary to ensure, wherever possible, any changes to employer’s contributions were minimal. That approach was consistent with the Regulations, which specified that the actuary must have regard to the desirability of maintaining as nearly constant a common rate as possible.

Members were advised of progress which included that:-

The Terms of Reference for the Actuarial Valuation at 31 March 2019 had been agreed with the funds actuary ahead of time.

The actuary had completed the longevity analysis for the Fund, using data and experience from the last 5 years. That analysis indicates that there has been a slowdown in longevity improvements since the last valuation and this will be taken into account when agreeing the final demographic assumptions.

Data extracts for actives, deferreds, pensioners, preserved refunds and dependants records was supplied in early July and the validation of this information has been completed.

It was explained that a meeting had been held on the 23 September 2019 with the actuary, officers and the Chair of the Joint Advisory Group and Investment Panel to discuss and agree the final assumptions to be used for the Fund valuation.  As a result of that meeting the actuary was finalising the whole Fund result following which the individual employers’ results including the assets, liabilities, primary contribution rate and any deficits payments required would be produced.

It was anticipated that the Employer’s result would start to be provided from early November. The results for the 5 West Yorkshire Councils, West Yorkshire Police and West Yorkshire Fire and Rescue would be produced first, with the results for the other employers following.

The Fund’s Actuary would present an item on the 2019 Valuation at the Funds Employers annual meeting on the 7 November 2019.  It was not expected that the results for the majority of employers would be available before that meeting; however employers would have the opportunity to hear from the Actuary on the outlook for the valuation.

In response to questions it was explained that employers had not been advised of likely contribution rates but the 5 West Yorkshire Councils, West Yorkshire Police and West Yorkshire Fire and Rescue had been advised that the fund hoped to keep rates the same as in 2019.

Resolved –

That the report be noted.

ACTION: Director, West Yorkshire Pension Fund